Why Gas Stations in the US are Turning into Supermarkets?

Over the last decade, a trend has emerged in the US: gas stations are increasingly becoming more than just places to fill up your tank. Many gas stations are transforming into convenience stores or even full-scale supermarkets. But why is this happening? In this article, we'll explore the reasons behind this trend and what it means for consumers.

The article "Why most gas stations don't make money from selling gas" by The Hustle provides some key insights. The article states that the profit margins on gasoline are extremely low for gas stations, ranging from just 5 to 10 cents per gallon. This means that gas stations need to sell a high volume of gasoline in order to make a profit. However, due to increasing fuel efficiency in cars, people are buying less gasoline. In addition, many people are now using electric or hybrid vehicles, which don't require gasoline at all.

As a result, gas stations are struggling to make a profit from selling gas alone. To stay afloat, many are turning to alternative sources of revenue. One popular solution is to add convenience stores to gas stations. These stores offer a variety of products, from snacks and drinks to toiletries and even hot food. By offering a wider range of products, gas stations can attract more customers and increase their revenue.

Some gas stations are going even further and turning into full-scale supermarkets. These gas stations offer everything from fresh produce to meat and dairy products. This trend is particularly prevalent in urban areas, where people may not have easy access to grocery stores. By providing a full range of groceries, gas stations can become a one-stop-shop for consumers.

 Another reason why gas stations are turning into supermarkets is that it allows them to take advantage of the real estate they already own. Gas stations are often located in prime locations, with easy access to major highways or busy intersections. By adding a convenience store or supermarket, gas station owners can make better use of this valuable space.

So what does this trend mean for consumers? On the one hand, it can be convenient to have a gas station that also sells groceries. It saves time and money by allowing you to fill up your tank and pick up groceries in one trip. However, some critics argue that the trend could have negative consequences. For example, some worry that gas stations may prioritize selling high-margin products, like cigarettes and junk food, over healthier options.

In conclusion, the trend of gas stations turning into convenience stores or supermarkets is a response to the changing market for gasoline. As fuel efficiency increases and electric vehicles become more common, gas stations are struggling to make a profit from selling gas alone. By diversifying their revenue streams, gas stations can stay afloat and make better use of the real estate they already own. While this trend has some potential drawbacks, it ultimately provides consumers with more options and convenience.